# In the matter of KSK Mahanadi Power Company Limited

> NCLT judgment dated 2025-10-16. Citation: TCN-2025-NCLT-01604. The case involves a dispute over the release of cargo imported by KSK Mahanadhi Power Company…

- **Court:** NCLT
- **Order date:** 16 Oct 2025
- **Citation:** TCN-2025-NCLT-01604
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/ksk-mahanadi-power-company-limited-73cc640d

## Summary

### Background

The case involves a dispute over the release of cargo imported by KSK Mahanadhi Power Company Limited (KSKMPCL) which is lying at Paradip Port. KSKMPCL underwent Corporate Insolvency Resolution Process (CIRP), and a resolution plan was approved. Power Finance Corporation, a financial creditor, initiated the CIRP. After the resolution plan was approved, disputes arose with Paradeep Customs Division and Paradip Port Authority regarding the release of the cargo, with both entities claiming dues and requiring certain clearances.

## Facts

KSKMPCL imported cargo which arrived at Paradip Port, Odisha on 15.06.2017.

CIRP was initiated against KSKMPCL under Section 7 of the IBC, vide Order dated 03.10.2019.

A Resolution Plan submitted by JSW Energy Limited was approved on 29.11.2024.

Paradeep Customs Division (R1) and Paradip Port Authority (R2) filed claims during the CIRP, which were admitted and partially paid under the Resolution Plan.

After approval of the Resolution Plan, disputes arose regarding the release of the cargo, with R1 and R2 claiming outstanding dues and insisting on certain clearances.

R1 raised a demand for alleged differential customs duty of Rs. 9,70,65,310/- based on a typographical error in a Bill of Entry of 2012.

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## Issues and analysis

### Issue 1: Whether the approved Resolution Plan extinguishes all pre-CIRP dues, including those of statutory …

**Ratio:** Section 238 of the IBC gives the provisions of the Code an overriding effect over any

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**Reasoning:** The Hon'ble Supreme Court in Ghanshyam Mishra authoritatively held that once a Resolution

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**Interpretation:** The approved Resolution Plan has a binding effect on the Corporate Debtor, its

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**Application:** All pre-CIRP dues of both Respondents stand fully settled and extinguished

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## Parties

- **Judges:** Rajeev Bh…; Yogendra Kumar…
- **Appellants:** Power Finance…; KSK Mahanadi…
- **Respondents:** KSK Mahanadhi…; Paradeep Customs…; +1 more
- **Other parties:** Committee of…; Sumit B…
- **Advocates:** Gopal…; Allwin G…; +10 more

## Timeline

- **15.06.2017 — Import of…**: KSKMPCL received certain materials under shipment number KMPCL-043S and have been lying…
- **03.10.2019 — CIRP Init…**: The Petition was admitted vide Order dated 03.10.2019, thereby initiating the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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